Saturday, March, 25, 2023 01:09:27

Apple, the US-based technology giant, has reportedly planned to increase prices for its in-app purchases on App Store in various nations across Europe and Asia from October 5.

The company stated that users in Egypt, Chile, Japan, Pakistan, Malaysia, South Korea, Poland, Vietnam, Sweden, and all other regions that use the Euro will be impacted by the price change.

Although the company didn't give an explanation, it presumably concerns local currencies that are weaker than the dollar.

For instance, while in South Korea, the price increase is between 20% and 25%, in Japan it is between 30% and 35%, and in nations that use the Euro, it is between 8% and 10%. The price change may also differ depending on the tier.

In Vietnam, Apple's latest price also comprises the payment of the relevant taxes, which are the 5% corporate income tax and the 5% value-added tax, respectively.

This news follows a report by analytics firm Apptopia that showed that developers had increased App Store charges by 40% as compared to the last year, possibly due to Apple's anti-tracking policies.

Apple raised the cost of in-app purchases for users in South Africa, the UK, and all other regions that use the Euro in August 2021. For many European customers, it's effectively the second price rise in two years.

As per the tech giant, following the implementation of these changes, developers will notice new rates in the My Apps app section.

With a 12% year-over-year gain, the business reported record Q2 2022 service revenue of $19.6 billion, which incorporates App Store earnings. However, it just missed the $19.7 billion analyst projection.

Local regulations, such as those in South Korea and Japan, may, however, compel Apple to forgo some revenue by accepting discounted rates from developers using alternate payment systems.

The business is expanding adverts to appear in more App Store locations, such as the ‘Today’ homepage as well as individual app pages, to increase revenue from the App Store.

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